L&T Technology Services (LTTS) reported a 7.51% rise in consolidated net profit to Rs 303.60 crore on 2.68% increase in revenue from operations to Rs 2,048.60 crore in Q3 FY23 over Q2 FY22.
As compared to Q3 FY22, the company's net profit and revenue surged by 22% and 21.4%, respectively.
Profit before tax was at Rs 445.60 crore in quarter ended 31 December 2022 (up 14.58% quarter on quarter (QoQ) and up 30.9% year on year (YoY)).
EBITDA rose 5.2% QoQ and 20.1% YoY to Rs 441.2 crore in Q3 FY23. EBITDA margin stood at 21.5% as in Q3 FY23 as against 21% in Q2 FY22 and 21.8% in Q3 FY22. EBIT margin was at 18.7% as in Q3 FY23 as compared 18.1% in Q2 FY22 and 18.6% in Q3 FY22.
In dollar terms, the company's revenue stood at $248 million for the quarter, registering a growth of 0.4% QoQ and 10.2% YoY. In constant currency, the firm reported flat QoQ and 13.5% increase on YoY basis.
During the quarter, LTTS won five deals above $10 million total contract value (TCV) deals and a significant empanelment with Airbus in digital manufacturing.
At the end of Q3 FY23, the patents portfolio of L&T Technology Services stood at 1,033, out of which 695 are co-authored with its customers and the rest are filed by LTTS.
LTTS' employee strength stood at 21,649 at the end of Q3 FY23. Voluntary Attrition last twelve months (LTM) was 23.3% in Q3 FY23 as against 24.1% in Q2 FY23 and 17.5% in Q3 FY22.
Amit Chadha, CEO & managing director of L&T Technology Services, said, Our double-digit revenue growth momentum continued in the third quarter led by Transportation and Industrial Products. Three of the five USD 10 million plus deal wins in Q3 were from Industrial Products on the back of our differentiated capabilities such as digital twin and sustainability driven product development.
Chadha stated, We reported a record high EBIT margin of 18.7% in Q3 which helped us cross the milestone of Rs 300 crore in quarterly profits. This demonstrates our continuing endeavor for shareholder value creation. We also crossed 1,000 patent filings, reflecting the engineering and technology talent driving growth for the company. For FY23, we expect USD revenue growth to be around 15% organic, in constant currency (using Q4 FY22 currency rates as benchmark).
Towards meeting our aspiration of a USD 1.5 billion run-rate by FY25, we are making strategic investments. In Q3, we opened a new center in Toronto for Digital Engineering and expanded our operations in Peoria to offer digital manufacturing and next-gen electrification solutions. Recently we announced the acquisition of Smart World and Communication (SWC) which is a progression of our 6 Big Bets strategy in the areas of 5G, Sustainability and Digital Products & AI. We are confident these investments will help differentiate our offerings and expand our addressable market
LTTS is a listed subsidiary of Larsen & Toubro focused on Engineering and R&D (ER&D) services. It offers consultancy, design, development and testing services across the product and process development life cycle.
Shares of L&T Technology Services slipped 3.42% to Rs 3,283 on the BSE.
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